Bitmain to Invest $54 Million in Bankrupt Bitcoin Mining Company Core Scientific
Digital asset miner Core Scientific announced a new partnership with Bitmain, a major player in the supply of Bitcoin mining and Artificial Intelligence (AI) computing hardware.
As part of the deal, Bitmain will invest $53.9 million in the company expanding their long-standing relationship.
Per the agreement, Bitmain will supply the crypto miners 27,000 Bitmain S19J XP 151 TH mining servers for $23.1 million and an investment of $53.9 million in Core Scientific stock, the value of which is decided by the bankruptcy court in Q4 2023.
Bitmain announced that it will supply Bankrupt Bitcoin Mining Company Core Scientific with 27,000 Bitmain S19J XP 151 TH rigs in exchange for $23.1 million in cash and $53.9 million in Core Scientific common stock. Bitmain has executed a new hosting agreement with Core…
— Wu Blockchain (@WuBlockchain) September 22, 2023
As it emerges from a bankruptcy proceeding, Core Scientific would reshape its operations leveraging on the cash/equity deal and previous hosting agreements with Bitmain to support the latter’s mining operations.
This development could see the mining industry in North America deepen further with top-notch equipment and a clear roadmap for expansion.
Since it commenced mining operations in 2017, Cire has deployed over 600,000 Bitmain miners with about 99% of the company’s hosting customers being Bitmain S19 models.
A partnership for the future
Both companies announced the deal as beneficial to their course over the next few years at a time when the crypto mining sector is taking hits from regulators and biting market forces.
Max Hua, Bitmain’s CEO speaking on the deal stressed their long-standing relationship with Core and a good track record over the years.
“We look forward to deepening our strategic relationship with Core Scientific, our long-standing U.S.-based partner. Their professionalism, integrity, and commitment to the success of their hosting customers and the growth of the Bitcoin (BTC) Network is unsurpassed in the industry.”
Hua added Core Scientific is essential to the Bitcoin network and needed to establish the blockchain’s full potential.
For Core, CEO Adam Sullivan sees it as a platform for expanding their fleet as they prepare for the next halving.
“We are honored to expand our significant relationship with Bitmain. Together, we have worked tirelessly to professionalize our industry, charting a path for the long-term growth of the Bitcoin Network as Bitcoin adoption increases around the world.”
Core turns to efficiency amid bankruptcy case
Last week Celsius and Core Scientific reached a tentative $45 million agreement that will see Celsius pay $14 million in cash with the remainder in adjusted claims for the Cedarvale mining site.
🤝 Digital asset miners Core Scientific and Celsius Mining have struck a $45 million deal over the Cedarvale mining site after months of litigation.#CryptoNews https://t.co/RDUNeSpkFf
— Cryptonews.com (@cryptonews) September 15, 2023
Keen on performance, the company aims to maximize existing machines and restructure its operations to maintain its stance as a main global player.
“We are seeking ways to optimize performance and efficiency at both the data center and individual miner level. We are repositioning some of our machines between and inside of our facilities to increase post-halving profitability,” Sullivan noted.
